2015 will be the Year that Enterprise Software ISVs Embrace Cloud Licensing
In 2015, we will see the bulk of the remaining Enterprise ISVs who don’t currently support subscription or pay-per-use licensing, finally embrace cloud licensing. This will appease the widespread market hunger for “Salesforce.com-style” pricing. By partnering with global and/or regional cloud service providers, these ISVs will enjoy a surge in mid-market customer acquisition. Mid-market customers may be SMEs who prefer SaaS due to ease of use and budget, or business divisions within large Enterprise companies who need to buy solutions on-demand rather than engage in costly and lengthy internal IT projects.
By embracing cloud-friendly licensing models, ISVs will finally capitalize this untapped market segment while staying competitive vis-à-vis the waves of new SaaS companies constantly emerging in their respective spaces. Not long after that, they will even see their largest Enterprise customers gain interest in this model, as organizations continue to move away from investing in and maintaining expensive infrastructure stacks and toward easy-to-use, easy-to-buy Software-as-a-Service solutions.